all on thinkorswim from td ameritrade. ♪ thanks for waking up with cnbc. i'm scott walker. how are you going to play your day today? no matter what you do, make it a great one. prs. >> that's right, boys. what would be better than waking up to my voice, huh? >> waking up with wapner. >> you guys are probably afraid i would fast fire you on there. all right, final trades. >> 85 calls unusual buy. >> steve weiss? >> pzn. a long institution yalg fund manager. >> and you know him? >> and i know rich. i don't own stock. friends with rich. >> okay. >> joe? >> close out the long xli.

short -- >> applied materials. amat. >> that does it for us. have a great weekend. "power" starts now. >> "halftime" is over. "power lunch" and the second half of the trading day starts right now. >> alarm bells and it is not the scott wapner phone app, believe me, they are sounding at one of the best known investment firms in the world. see why a wall street journal report says sac capital is suddenly so nervous. payday problems. if you haven't looked yet at your direct deposit, get ready for a bit aftof a disappointmen. we will show you why. plus, info into stock funds. hitting highs not seen in years. is it time for america to get back in the game or not? sue at the nyse. >> high, ty. can you love him or hate him. sac capital led by steven cohen

has been major force for years. investigating involving insider trading may take a bite out of their business. the hedge fund is bracing for an exodus with client withdraws that might go as high as $a million dollars this year. dana joins us now from london. dana, how big a hit are they expected to take in terms of client withdraws and how do we gauge that because they have so much money under management and a lot of the money is management's money. >> right. well, what we said in the story is at least a billion. so the sense we get is that it could be more than a billion. the break down -- it is an unusual firm. most of its assets belong to insiders, namely steve cohen, founder of the firm. to the tune of about $8 billion. it is a $14 billion fund in total. then there's about 6 billion of outside money. we are focussing on the outside money right now.

if they were to lose a billion dollars of outside money, they probably couldn't survive that. i think there's two potential risks tore them. one is that the operations of the firm are funded largely from fees derived from the outside money. so as they lose that money, they lose money to pay people and keep the lights on and all that. then the other issue without screaming, you know, fire in a crowded movie theater, as the people ask tore their money back, it sometimes becomes a self, you know, something that feeds on itself. so the question is if you're an investor and you don't want to pull your money out because maybe they've had such great returns over the years, that you see other people doing it, you might say, you know what, i don't want to be the last man standing. so it could feed on itself. >> there is a timeframe within which investors can choose to redeem their funds. and they have to lift the gate, so-called gate, in order to do that. are there safe guards that sac put in place in terms of what

percentage can be redeemed as certain period of time? to prevent a mass exodus of funds? >> yes. a lot of these firms do this. there is a simple reason why they do it. if everyone suddenly asked for their money at once, they would be force need a fire sale of assets. and they obviously don't want do that. what they said is if you want your money out, tell us by february 15 and we will give it to you in four equal installments, quarterly starting in march. >> all right, thank you, dana. we appreciate it. thank you for joining us. >> thank you, sue. from sac's outflows to stock inflows at marine expeditionary un unit -- mutual funds. there is a suggestion that investors are becoming more comfortable with riskier assets. so is it time to get in the game p stock broke fler springfield, massachusetts, good to have you with us. >> thanks.

>> are you seeing this kind of interest in u.s. equity funds or u.s. stocks in your practice? >> yes. after the election was over in november, we started to see people getting back interested in the market again. it started to really pick up now in january. but after november we started to see people coming back into the market. >> are there any particular categories of investments or funds that seem to be more in favor than others? we decided the number on domestic stock funds but obviously large cap, small cap, index, international. what are you you fiechbding your cl finding your clients are asking about? >> stocks. if you can tell a story where a dividend is higher than the ten-year treasury, that seems acceptable to investors, tyler. >> the history is, when individual investors pour money into mutual funds, they do it precisely at the wrong time. it is a better sign after peak

than a trough in the mark pept what do you think? >> true. true. that's a short term indicator. investors have been pulling money out of stock equity funds and the market has gone on to hit new highs last week. so i think people finally realize that i might have missed something and there is so much good news happening economically that i think people finally realize i can't sit in that zero percent interest rate any more. i need to get out and do something. >> so i take to you are basically encouraging your client to put money to work in risk assets in a way that main they had been loathed to do over the past couple of years. and what categories of investments are you recommending right now or name names? >> well, i like, you know, big blue chip stocks raising dividends. i know microsoft and ibm have raised dividends aggressively in the last four years. those are good stories to tell people. most people still have one foot on the dock and one foot on the boat. they are not sure whether to get in the boat or back on the dock where it's safe. so when you tell a story about a

rising dividend, that's a very easy story to tell and it does get people in the market. big blue chip stocks. we are talking more about real estate income trusts as a way to get income. lps of course. basically just telling a story that maybe the risk of the last five years is over. people need to now think about their retirement. >> mark teed, thank you very much. >> thank you, tyler. >> are you getting back into the game? that's a question for the day on finance.yahoo.com. go there and vote. we have will the results for you later this hour on "power lunch." sue? >> ty, as you know, u.s. regulators ordering a review of boeing 787 dream liner after a series of incidents which put a question mark over the safety of boeing's flagship plane. the shares this week have taken a hit. down another 2% in today's trading session because two more problems with 787s on domestic japanese flights today. there was an oil leak and the other a cracked windshield.

phil lebeau is tracking information from washington. >> the ntsb said, this is af plane, feel confident if you are playing it. at the same time, the faa launched a special review looking at reliability and safety of the 787 dreamliner. it'll be run by the faa. but boeing will be assisting in that review and so will some of the suppliers, no doubt, as they look at electronics and use of lithium ion batteries on the dreamliner. remember a lithium ion battery was traced to be the source of the fire of the 787 that caught on fire while parked at a gate in boston on monday. in 2007 the faa made special rules for the use of lithium ion batteries on airplanes because of flammability can concerns. with all of that said, listen to what the head of the faa and secretary of transportation add to say when asked point blank, is it safe to fly the dreamliner. >> there's nothing that data has

said that would suggest this airplane is not safe. >> i believe this plane is safe and i would have absolutely no reservation of boarding one of these planes and taking a flight. these planes are safe tp prs. >> another part of the review by the faa, looking at the manufacturing process of the dream liner, remember, beauing is rampantly scaling up production of this dreamliner from five a month, where it currently is. boeing denies that ramp up is at the root of the problems that we have seen over the last couple of weeks. and they believe the certification process will ultimately be validated. >> the process does not stop with just certification. as every airplane program we've had continued to work together on a daily basis to ask all the right questions and to address all the right issues. >> one last thing to consider as you look at shares of boeing over the last week, down roughly about 3% when you factor in

today's losses. sue, this plane is in essence a connected plane. they have constantly been monitoring the different aspects of the plane from the batteries to electronics. all of the flights. they've been monitoring these. so they have data they can look at and say, okay, is it performing or is there an area of concern here? so it will be interesting to see how long this review takes. >> indeed. phil lebeau, thanks so much, appreciate it. ty. >> goldman sachs downgraded the food sector to attractive. i find food attractive most of the time. saying most of them remain challenging. on the docket, jm smucker, with a name like that, you know it has to be downgraded. conagra, dole and general mills and heinz. soup, it's good for you. >> you're on a roll today. >> soup is good for you. >> it is, it's good food, right?

>> right. >> because the widely watched report on the nation's crop production came in and it was bullish, jane wells is live in l.a. for us. hi, jany. . >> hey, sue. actually a mixed picture for corn and the usda says there is more corn than predicted and instead you would think this would bring prices down but it jumped up because a lot more corn will be eaten by cows and hogs and chickens. this is 721, that means 7.21 for corn. live stockers haven't called their herds as much as they are supposed to. that leaves the u.s. with low supplies of corn at the end of the year. that's a 17-year low only a three-week supply leaving prices high and volatile potentially says the government. the news not bullish for soy producers. ending stocks higher than expected. usda says prices should be lower

than expected. and brazil will now surpass the u.s. as top soy bean producer and exporter. finally, wheat prices jumping on projections that global wheat supplies are down and less winter wheat than expected has been planted. tyler? >> thank you very much, jane. wells fargo, first major bank to report earnings this season. q 4 profit up 24%. but the net interest margin declined as it made fewer mortgage loans in the third quarter. right now wells fargo down. 1.3% decline. wells fargo ceo timothy sloan will be on -- excuse me, cfo -- i gave him a pro foegs there, he should be happy. but his boss won't be happy. the bell, he will be on bell, 3:10 p.m. today. the banks results and outlook first on cnbc. >> all right. payday for many americans.

if you think your check is a little less than usual, you're not alone. eamon javers, say it ain't so. >> hi, sue. it is so. there is a big bite coming out of your paycheck. if you check your first check of the year this week, you will notice there is a lot less money coming in. i will explain why when we come back. at optionsxpress we're all about options trading. we create easy to use, powerful trading tools for all. look at these streaming charts! they're totally customizable and they let you visualize what might happen next. that's genius! strategies, chains, positions. we put 'em all on one screen! could we make placing a trade any easier?

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r. it's friday bb and you might be disappointed with your check today. app eamon javers has more. how big of a bite is it out of your check this year? a person making $60,000 per year bi-weekly, $2307.69. fieka, 96.97. now look at the person's new paycheck in january. gross is the same as is medicare and state taxes but fica taxes go up sharply to 143.08. that's $46.15 hit to the wallet. sue that is grocery money or a tank of gas every two weeks and that's real money for people in this very tough economy.

>> it sure is, eamon. >> i'm going to be looking at my my stub, eamon. take a look. take a look, thanks a lot. eamon also telling us what the sandy relief bill has just uncovered about the state of big government. we'll be back with that next. plus, social media stocks on a roll. ahead of facebook's report next week. is it a good time for you to log? how am i ever going to wake up in the morning? >> rise and shine. >> sullivan. >> wake up. >> 6:00 a.m. >> futures are up. >> buy, buy, buy. it's go time. >> this is the voice of cnbc. >> realtime updates on the markets, news, weather. wake up with the cnbc alarm clock app, free on the app store. what are you doing? nothing. are you stealing our daughter's school supplies

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it is "power" rundown time. first up, the sandy relief bill is expected to be voted on next week. a lot of people complaining about pork in the package. eamon, is there a lot of pork in it? let's start with you. >> well, there's a lot of stuff in it. a lot of spending. the definition of pork depends on who is criticizing the spending. i look at this bill last night and you get a sense of just how epic the damage was from hurricane sandy and also a sense of how big the federal government is and the footprint of the federal government and

the impacted area. let me run through a couple items on this list of what's in here. they will spend about $3.8 million at the domestic nuclear detection office to replace certain equipment at the department of homeland security for detecting nuclear emissions. they will also spend money, about $3 million at safety and environmental enforcement on oil spill research. nasa is getting $15 million for repairs. even the army is getting $1.31 million for procurement of ammunition. there is just a lot of very random stuff in here. it gives you a sense of how much damage there was and pow hou big government is. >> jane, any reaction here? >> i'm shocked. >> shocked? >> who likes this stuff. but everything i'm hearing, it is a billion here, a million there. i ne that adds up. but that means there are billions going to sandy or in the block grants which yes, 47 states can compete tore them,

not just new york and new jersey. i can't get really worked up about this one because there is so much damage. what do you pay your taxes for? these people need help. let's help them. >> eamon, how does this get in for ammunition? >> it is needed as a result of destruction from sandy but congress does a lot of different things in the bills sometimes and sometimes there is stuff in here that is just on the wish list for a while and they slip it in squie quietly when no one looking. >> i'm all for replacing ammunition. if the military needs more ammunition, i support that. >> like i say, it is not necessarily about pork barrel spending. it is about the epic scope of the spending. spending on all kinds of different things. pretty much every federal agency in this bill. ultimately $17 billion bill with $33 billion amendment to it. the amendment is bigger than the bill itself. there is a lot of spending and that is on the floor in congress

next week. >> how a bill becomes a law. let's move to always the diverting and interesting vice president joe biden. he is meeting with video game industry reps today. jane, what do you think o on this? are violent video games somehow contributing to violence in the real culture? >> if they did, my house would have been burned down a long time ago. video games don't kill people. occasionally mentally ill people kill people. i think, you know, we want it look for causes, it's pretty low down on the list. maybe contributing factor. my feeling is all these actors coming out, saying, let's stop guns, let's stop violence. let's see them stay out of violent movies and video games. >> eamon? >> yeah, tyler, i wrestle with this one. i have three small children and we are just getting to the stage where they want it bring them

into the house. es this games are awful and you see a guy running through a building shooting guys. and you think, what is it why why does my kid need that? you wonder what the impact is on people sitting there hour after hour after hour. >> they have bigger problems than the video games. >> i think they do have bigger problems. i have two boys and i would say, i am concerned about the desense advertisizi desense advertisingtizing, none one and then the fantasy violence. and frankly rather preposterous, but why not, would you consider this a hostile environment? social security administration reprimanding an employee whose coworker says he continuously passed gas. the agency later rescinded the punishment against the employee. i just don't know where to go with this. but is this a hostile work

environment, eamon? >> i don't know. i'm just glad i'm here in the studio by myself, tyler. i'm not with you guys. i have no idea -- >> maybe we're glad we're not with you. >> how small is the cubicle, that the question. when we are in the workplace with other people, we have to deal with other people and all of their weird stuff. some of it is really weird and some of it is offensive and that's part of being a human being. >> i guess a lot of things are part after being a human being. how about you, jane? i'm interesting to hear -- >> i know, i had brothers, husband, i know all about this. my feeling is, that you know, some people obviously can't lep it. but there are product out there. gas begone. go to gasbegone.com. where the tag line is, don't blame the dog. which, by the way, i have. they have cushions. i did something on this company years ago. you sit on these cushions. they help. he can do it on command.

>> look at that. a gasb gon pillow. sadly, they ended there -- >> sadly? >> sue? >> i go >> i get to follow that? what is the status this year? blackrock's top man. and a city with $10 million homes for sale. robert franks has the answer and he will join us in a second.

welcome back to "power lunch." bob pisani is on the floor of the nyse. kind of dead in the water at this point, bob. >> the key is to watch what is going on with the banks. let's look at the banks. they are all down. don't get surprised. this always happens, first day of bank earning sea son. they always move to the down side. wells fargo, nobody is upgrading their point on what they said. it is hard it argue for loan growth. that what we need and steeper yield curve. if you buy that, a lot of these are holds right now. let's move on.

i just want to show you american express. i know a lot of people are talking about layoffs. slowly exiting the travel business. . >> credit card spending up 8% year over year. that's an excellent number. this stock is a couple dollars away, from an historic high, 52 week high. by the way, rewards program, they've got the best out on the street. the amount they recognize to pay out to rewards members is up a little bit too. that may be pressuring stock a little bit or keeping it from moving up more. for the week, sue, sort much treading water here. after the big move we had you've last week, a little bit of digestion, i don't think this is a bad number at all. historic highs on the russell this week. back to you. >> have a good weekend, bob. >> you too. >> let's check gold prices. share on epperson is tracking for us on. hi, sharon. >> it is able to be over the 1650 level here. looks like well close right around 1660.

but there does seem to be considerable weakness in the gold market. a lot of traders excited about yesterday's rally and the fact that yes, we are going to see a slight gain for gold prices this week, tle say that really when we look at it in terms of euros, we look at extreme weakness in the gold market here, down about 1.5% so far this week. even with the strength we have seen in the euros. that lets you know there is still some weakness here in the gold market. we are seeing profit taking pretty much across the board in metals complex. but another factor that may be contributing to the fact that we are seeing some weakness in gold is that traders are favoring platinum particularly this week going into 2013. looking at the white industrial metals as the place to be in really helping to supply hopefully create a rally that will continue for the next several months. back to you. >> thanks, sharon. rick santelli is tracking at the cme. we see the yield curve on the

30-year can be how are they doing today, ricky? >> this goes to the point. everyone is concerned if you are thinking rates aren't going up because they have. but they haven't really gotten traction at critical levels. so you look at one-week chart of everything. last week we closed at 109 and a 10 and yesterday closing at 190 and a 10. we back away when we get into the 90s. very similar for the 30-year bond. certainly, we spent a lot of time flirting with 310 to 312. here we are at 305. closing at 308 last week. we are down three bases points on the week. foreign exchange different story. trend is truly your friend when it comes to foreign exchange. you look at euro versus dollar. 9 1/2 month high. we continue to look at various things like how far we have shot now through 133 so a gig week for the euro and an especially

big week, welcome a new handle dollar yen. looks like well close with a handle and closing in on 30-month highs versus the yen. we're not the only currency that's exploding against the yen. pretty much pit the pound, euro, canada, all having a route against the yen and i think that bank of japan is pretty darn pleased with that outcome actually. back to you. >> we will talk about the yen as well in a couple of seconds. thanks, ricky. with $1.2 trillion under fixed income after management, what is blackrock's strategy for the coming year? they have agreed to open the 2013 play book here first on "power lunch" before anywhere else. exclusive first details now from jeff rose enburg, chief investment strategist from blackrock. thanks for being here. thanks for coming back. >> good to be here.

>> let's start first of all with rates. rick mentioned the fact that everybody is expecting them to go up. are you in that camp as well? >> we are in the camp but the lead theme song from my favorite themes this year is won't get fooled again, reference to 1972 move favorite. what that's about is two themes. one is, we don't want to be fooled by investing too much in fixed income and interest rates where yields are below the level of inflation. but for years, myself included, we expected higher interest rates only to be disappointed with that. we are looking for modest increases and interest rates. we are much more cognizant of the risks to that outlook and that we may end up fooled again. if any of those risks develop. but there sr modest increases in interest rates. >> the next song is like a rolling loan. how does it feel? what is that in reference to. >> in reference to what is going on in the credit market.

in particular the returns that investors have come to appreciate and benefit from this the high yield market. a big area of investment flows over the last couple of years seeing double-digit returns off of the recovery from the 2008 credit crisis. like a rolling loan is about the liquidity in the market. when you can roll over a loan and you can extend your debt maturity, default rates are low. today's default rate are below 2%. we expect default rates it remain low and that will support the yield that you will be able to achieve out of the high yield -- >> a lot of people think that high yield play is played out. but if you look at fundamentals, that scenario does not hold true. >> let's talk about what is played out. what is played out is price appreciation. that's where the big double-digit returns. 16%. what should reexpect this year? you will earn your income and default rate will stay low. so that is not offset by large surprises and defaults. we are looking at low to mid single digit return for high

yield. mostly from the income side. >> you also expect the housing market to continue its recovery. correct? >> yes. the housing recovery theme is a very well played out theme. many investors ourselves expect that. what we are looking at is where are the areas in the market where you haven't seen a big as price appreciation for that housing recovery expectation. and obvious areas are really where you don't want to be. stock land in home builders. which are very much reflective of that housing recovery theme. so in bond land, it is areas of the real estate market that still benefits. so that's nonagency security, have some room relative in our expectations for better perform puns. >> if indeed we do see that recovery in housing sections of the muni bond market probably look fairly attractive at this point. you have to pick and choose. >> the housing theme for

municipals is the credit folly, undermined from real estate transactions. that helps them. credit quality municipals are improving. what comes out of this whole fiscal cliff debate is the muni asset class emerges the best. tax deductibility looks more attractive and higher tax rate environment and threat of losing that tax deductibility because of fundamental tax reform depends on your odds of what you think will happen. i think the odds have gone down dra matlick so we push push tth threat off into the future. >> trif ib, jeff, thanks so much. good to see you again. ty, you are up-to-date. you got it first here on "power lunch." >> thanks, sue. our guest just spoke about the housing recovery. what does it mean for the mortgage boom? there are clues in wells fargo's earnings today. kayla. >> in the nation's largest housing provider is about as good an indicator as you can get. the bank's fourth quarter showed

a slow down in mortgage origination in addition to attracting margins but more importantly the pipeline for upcoming mortgages drop to $81 for 97 billion in q3 and over a hundred billion in q2. could there be a slow down ahead in cfo tim sloan is asked exactly that. >> we would expect to benefit from seasonally stronger application nets first quarter. we start the quarter with the very strong pipeline, one of the strongest pine lines in our history. so we feel confident and more optimistic about continues origination in the mortgage business. >> no question winterer is less popular for home buying than spring time. so seasonality is at work. but paul miller seems to echo the view on wall street saying quote while we expect it to continue through 2013, will we stay with profitability? no. so one year left under the mortgage boom, get them while you can. >> kayla, thank you very much. >> let's recap headlines driving

today's session. slightly weaker holiday sales but the results still better than wall street had expected. dendreon shares, could be one of the best in 2014. software providers surging after it reported stronger than expected quarterly answers revenue. green mountain moving up after sun trust raised price target o to $50 from $45 a share. citing increased confidence in the company's growth potential. and social media stocks, they were battered in 2012 but have been on the rise over the past few weeks. notably led by facebook. julia boorstin, is there a major sentiment under way? >> tyler, there does seem to be a positive sentiment. i will tell you what is driving that upside, coming up after the break. we will look at all of the movers. back over to you.

they don't know it yet, but they're gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade. with multiple lacerations to the wing and a fractured beak. surgery was successful, but he will be in a cast until it is fully healed, possibly several months. so, if the duck isn't able to work, how will he pay for his living expenses? aflac. like his rent and car payments? aflac. what about gas and groceries? aflac. cell phone? aflac, but i doubt he'll be using his phone for quite a while cause like i said, he has a fractured beak. [ male announcer ] send the aflac duck a get-well card at getwellduck.com.

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that amount of money flowing into stock mutual funds was a great scene since may of 2001 also coming on the heels of kind of its outlook by s&p because they were concerned about outflows. seems that the inflows were the winners on january 9th. back to you, tyler. >> mary thompson, thank you p. we are watching the white house closely at this hour. president meeting with afghan president hamid karzai. they are holding a joint news conference right now.

president obama may also be asked about gun control and debt ceiling as well. if he is, we will take you back live to the white house. sue? >> indeed we will, ty. in today's yahoo finance question of the day, we asked, more than 19 billion flowing into u.s. equity funds this week. highest uptick since 2000. are you getting back into the game in 32% say yes, i'm getting back into stocks. 25% say i'm cautious but thinking of getting back in. 43% say no, i'm staying on the side lines. >> let's see what is coming up on "street signs." 2:00 p.m. eastern time with mandy. >> absolutely, sue. we are kind of at an inflexion point. multiyear lows for vix. where do we go from here? we will lay it out with a bull and bear case. also our americans cool again. a hiring spree and we also asked to you tweet in your favorite car or truck under $100,000.

we will reveal some of the result and show ours as well. all of those things coming up on this friday edition of "street signs." sue, back to you on "power lunch." >> thank you very much. social media stocks after being battered last year are on the rise led by facebook recently it moved, you probably noted, above $30 a share. angie's list all benefiting. here is how they are trading right now. three out of four are up. but facebook. the within we just mentioned above 30 sb still above 30. 31.28 but down two pennies right now. boorstin joins us from l.a. with the reasons for the shift in sentiment. julia? >> tyler, when you talk about social media, you have to start with facebook, the biggest of the social players. it was looming but it was about a percentage point higher earlier today. wall street is optimistic that the social network is figuring out its biggest challenge which is how to make money from the growing mobile use. in prior five trading days, the stock added about 12 percentage

point on a handful of analyst reports looking at revenue potential in mobile as well as new businesses like retail and an ad network. now, linkedin, up 5% over the past few days. driving its rise as it hit the milestone of 200 million members. even zynga, a stock slammed hard, up a couple percent higher today, driving that move is acquisition of over 30 patent in on-line gambling space. zynga still facees a number of hurdles before it can open casino and social games it real gambling. wall street is buying the stock whenever there is movement in that area. so right now, all eyes are on facebook's mysterious announcement on tuesday. it says it will reveal what it's been building. we're not sure what that means yet. and then we will get facebook's all important q4 earnings coming up after the bell.

we will see if the company comes up to newly hired expectations. sue, over to you. >> thanks, julia. this is one area where high end real estate is hot, hot, hot right now. our wealth editor robert frank is taking us for a bit after tour. hi, robert. >> hey, sue. we will tell you which billion airs beach playground is the hot nest the country for mega mansion sales. that looks nice. it is not in florida. that's coming up next. i had enough of feeling embarrassed about my skin. [ designer ] enough of just covering up my moderate to severe plaque psoriasis.

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the ocean, great weather. who wouldn't want it live in malibu? the question is, though, can you afford it? cnbc's wealth editor robert frank is looking at how the beach front city is fast turning into the world's mega mansion capitol of the world. robert? >> that's right, who wouldn't want to live in malibu? it has long been a millionaire's sand box. larry elson has more than a dus enproperties there but malibu is exploding and fast becoming the world capitol, or one of them with, for hyper priced mansions. it is number one in the nation for homes of more than $10 pill

million. sales soareded in 2012 over 2011. $123 million, no doubt from what i call the mansion cliff. sellers hoping to beat the recent increase in capital gains taxes. taxes have come down a little bit. this mansion in paradise cove went tore $36.5 million. sounds like a lot. but it is 19.5 million off the original asking price. malibu boom shows no signs of slowing right now. january saw the blockbuster sale of $75 million estate sold by howard marks. the billionaire money manager. buyer is unnamed russian. but reportedly all cash. now some current listings will no doubt make headlines this year. this 235 acre vineyard with 12,000 square foot house son the market rye now. can be yours for mere $59.5 million. of course with a vineyard it

comes withets own wine tasting room. sue? >> but it's not nair the ocean. in the hills of malibu. >> yeah, so you are kind of slumming it for $59 million. but somebody will make do, i'm sure. >> i'm sure they will. not us, unfortunately. ty, over to you. >> home to one of the many players, bound to be lots of parties going on here in celebration of this week's oscar nominations and maybe some sort of people crying in their beer as many veteran hollywood producers out there, including our next guest, daved friendly. producer of 2006 best picture nominee "little miss sunshine". good to have you with us. >> thank you, good to be here. >> i assume that oscar nominations add to ticket sales in a measurable way. that's why they have all of the hoopla and fanfare about it. but i'm curious, it used to be just five nominees for best picture. this year there are nine.

last year, as i recall, there are ten. why? >> they have changed the system a few years ago to what they call preferential voting system and it's quite complex. but here is the thing. any picture nominated for best picture has to have at least 5% of the votes for best picture. so this year, every picture that's on that list got at least 5%. now you ask a question, why were they expanded. there is any number of reasons but commerce is clearly part of it. they want to attract more viewers to the academy awards show. have a broader-based audience and you know, over all, i think people in the business feel this is a good thing because it opens up movies that might not be considered. for example, this year, "sky fall" people thought had a chance to be nominated. it wasn't but could have a few years ago. batman wasn't nominated. >> and flight wasn't nominated as well. if you get 5% of the votes in

the best picture, you become a finalist in the best picture? >> that's exactly right. >> but again in other categories, like best actor in leading role, which has bradley cooper, daniel day lewis, hugh jackman, joaquinn phoenix, denzel washington, a a lot of those categories are limited to five. >> right, they have extended the ka categories. but if you extend all categories then it would be way too long. there are nine pictures and five categories. while i don't wake up feeling sorry for ben affleck, today i do feel sorry for ben and katherine bigelow who directed "zero dark thirty" and kwinten tarentino, whose pick furs was nominated but he wasn't. >> that is django.

>> right. >> katherine and ben affleck for argo, why do you think those didn't get nominated? >> well, i don't really have the answer it that. chairman of sony was quoted in the "los angeles times" today being befuddled. i'm sure she was. it's directors voting for directors. so the one thing you can say, is their peers opted to vote for these specific directors. one of the movies, nominated in both the best foreign language film as well as best picture category, is literally the whole movie takes place in two rooms. they are rewarding the performance. katherine begelow created a movie about the greatest manhunt in history that probably had 50 locations and was a much more complicated move oe to mount. where there is a consensus is

"lincol "lincoln." it is the most honored film of the year. >> i saw it last week, david, and i was struck apart from the performance of daniel day lewis, by the beauty of the photography and cinematography of that film. i thought it was brilliantly shot. >> steven spielburg works with the same people over and over. they are the absolute top at their craft. what i find ironic is this movie is a period history lesson, but entertaining that took place 150 years ago and just crossed $150 moil m million at the box office. that is astonishing. gives you confidence about the taste and intelligence out here. it is not just a bunch of board games being turned into movies. >> and is t is a movie, david, that we know how it ends. >> yes, we do. it is interesting because it has 145 speaking parts. it is somewhat jarring at the beginning because you know, the ri

republicans are the ones fighting hardest for abolition. and you scratch your head saying, things have turned quite a bit in the last 150 years. i also think it is a big day, by the way, for fox, and chairman of the studio. they got two best picture nominations for "beast of the southern wild", which was not expected in my book. and "life of pi" which everyone was hoping for but there was no certainty. they were big winners as well. >> david friendly, thanks you for being with us. >> good to be here. >> keeping an eye on boeing. stock ticking off the session lows. the company's ceo said we stand 100% behind the integrity of the 787. however, the company does look forward to participating in the joint review with the faa over the problems. that aircraft has had. sue, right now, boeing is down 3.1%. back to you. >> thank you very much, mary. a warning and recall from merck about one of its cholesterol drugs. we will have that for you when we come back on "power lunch." a,

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merck is recalling a drug to